Money & Banking

Rupee strengthens to 55.15

Our Bureau Mumbai | Updated on July 13, 2012 Published on July 13, 2012

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The rupee strengthened to close at 55.15 against the greenback. Positive sentiment on account of lower trade deficit figure led exporters to sell dollars. The domestic currency opened higher at 55.65 from the previous close of 55.94. The trade deficit, or the gap between exports and imports, narrowed to $10.3 billion in June against $14.4 billion in the same month last year. “The rupee moved as trade deficit narrowed in June. Strong inflow of dollars into a large telecom company also supported the rupee,” a dealer with a foreign bank said. “Exporters have also liquidated some of their dollar holdings in the past two days, when the rupee touched 56 against the dollar.” Intraday, the local unit moved between a high and low of 55.10 and 55.72, respectively. The rupee’s movement on Monday will be governed by the June inflation figures. Wholesale Price Index-based inflation for May was at 7.55 per cent. Inflation figures hold the key in deciding the policy rates during the first quarter review of monetary policy 2012-13 on July 31.

Call rate dips a tad; bonds mixed

The inter-bank call rates, which opened flat at 8.15 per cent, closed at 8 per cent.

The more widely traded 9.15 per cent government security which matures in 2024 closed at Rs 106.27 against the previous close of Rs. 106.34. Yield in both the cases was at 8.32 per cent.

The 8.15 per cent government bond maturing in 2022 closed at Rs 100.34 (yield: 8.09 per cent) from yesterday’s close of Rs 100.30 (yield: 8.10 per cent).

Published on July 13, 2012
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